Just needed one clarification relevant the way clients get installed with the AI concept for Sol11.

I have setup an AI server have a common manifest file, system config file for my client systems.
While installing the client, I just specify the env variable AI_HOSTNAME and AI_IPV4 to the relevant client, and the installation happens successfully for the client.

The clarification that I needed was, can't I export AI_HOSTNAME and AI_IPV4 to multiple client systems in one go and create multiple separate profiles for the client and carry out client provisioning. As when I tried testing this, somehow I see that the last address is taken and the client installation received the same public IP for the machine and hence cribbed for duplicate IP found.

As of build 8, the behavior has changed: the template placeholders will be stored unaltered in the profile, to be replaced with the actual client system criteria values at the time of the automated installation (bug 15763055).

That would be Solaris 11.1 Build 8 (which was an internal build). In other words, Solaris 11.1 (released at the beginning of November) includes that feature. I believe you would need to update your AI server to use this feature.

Also, AI_IPV4 could be replaced by the value assigned by DHCP when the AI client was booted, or perhaps from OBP variable network-boot-arguments for SPARC. As DHCP can assign the same IP address for different systems at different times, this could result in duplicate IP addresses.
You may want to look at Using SC Profile Templates - {{AI_HOSTNAME}} variable not being used